Investment performance is only part of the story. Fees, costs and taxes also affect how much ends up in a member’s account.

That’s why looking at returns or fees on their own can be misleading. A low-fee fund won’t necessarily leave members better off if its investment returns are lower. In the same way, a strong return doesn’t tell you what it cost to achieve that outcome.

That’s where net benefit helps. Net benefit measures the investment return a member receives after fees, costs and taxes have been taken out. Put simply, it gives you a better idea of how much value a fund has actually added to a member’s super over time.

For employers, that makes net benefit a helpful way to understand the value their staff are getting from their super. Instead of comparing one number at a time, it gives a more complete picture. Better yet, it can help you see whether a fund is helping your staff get further ahead.

According to SuperRatings, based on a starting salary of $50,000 and a starting super balance of $50,000, a member invested in the Hostplus Balanced (MySuper) option was $30,219 better off than the average member of a not-for-profit super fund over the past 15 years.2

Compared with the average of all other balanced options over the same period, that difference increased to $36,581.2

Those outcomes show the difference strong long-term investment performance and low administration fees can make over time.

Across a working life, a higher net benefit can mean stronger retirement savings and more choices later on.

Because a better way to judge a super fund is not by one fee, one return or one good year. It’s by looking at where members end up over the long term.